Canada’s Ministry of Finance and Intergovernmental Affairs issued a release on 3 March 2025 proposing to extend the 15% Mineral Exploration Tax Credit for investors in flow-through shares for an additional two years, until 31 March 2027.

The Mineral Exploration Tax Credit, which was scheduled to expire on 31 March 2025, provides important support to junior mineral exploration companies working to unlock Canada’s tremendous mineral wealth, creating jobs, and growing the economy. This extension is expected to provide CAD 110 million to support mineral exploration investment.

Canada’s abundant minerals and metals are a key driver of our economy, and the Government of Canada is investing to support the talented workers, infrastructure, innovation, and environmental stewardship necessary to sustainably develop our natural resources, creating good-paying jobs that grow the economy.

“The proposed extension of the Mineral Exploration Tax Credit is a testament to our belief in Canada’s vast mineral potential. By supporting the talent and innovation of our resource sector, we are driving economic growth, creating jobs, supporting communities and positioning Canada as a global leader and reliable supplier of critical minerals to the world, “Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, said. 

“Canada has long been a mining nation, with the responsible and sustainable management of our mineral resources driving job creation and economic growth for generations. Today’s announcement extending the Mineral Exploration Tax Credit reaffirms Canada’s commitment to strengthening this vital sector. The Mineral Exploration Tax Credit provides support to junior exploration companies as they develop the mines of the future and lay the groundwork to supply the world with the minerals it is looking for,” Jonathan Wilkinson, Minister of Energy and Natural Resources, said. 

Quick facts

• The 15% Mineral Exploration Tax Credit helps mineral exploration companies—especially junior mineral exploration companies—raise capital by providing individual investors with an additional incentive to finance early stage “grassroots” mineral exploration using flow-through shares.
• In 2022, the Mineral Exploration Tax Credit supported about 200 companies to raise equity by issuing eligible flow-through shares to more than 10,100 investors.
• As part of Canada’s Critical Minerals Strategy, in 2022, the federal government introduced the 30% Critical Mineral Exploration Tax Credit, which supports certain critical mineral exploration expenses incurred in Canada and renounced to flow-through share investors.
  • The Critical Mineral Exploration Tax Credit applies to exploration expenditures targeted at minerals used in the production of batteries and permanent magnets (both of which are used in zero-emission vehicles or are necessary in the production and processing of advanced materials), clean technology, or semi-conductors.
  • The 30% Critical Mineral Exploration Tax Credit cannot be claimed in addition to the 15% Mineral Exploration Tax Credit.